DULUTH 鈥� Ontario Premier Doug Ford鈥檚 threat to cut off electricity exports to three U.S. states, including Minnesota, in response to the Trump administration鈥檚 sweeping tariffs on imports from Canada would likely have negligible effects on Minnesota Power customers and the region鈥檚 power grid.
While Minnesota is linked to Ontario鈥檚 grid by a transmission line over the Rainy River, Duluth-based Minnesota Power bought just under $310,000 of electricity from Ontario鈥檚 system in 2024, according to public filings. It did not buy electricity from Ontario in eight months of the year.
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By comparison, the company spent $108 million on electricity from Manitoba, Ontario鈥檚 provincial neighbor.
鈥淢innesota Power has an electric grid connection with Ontario, and on occasion we do utilize electricity from their system,鈥� said Minnesota Power spokesperson Amy Rutledge. 鈥淗owever, it is not on a daily basis like our contracted electricity from Manitoba Hydro.鈥�
Electricity imported from Manitoba Hydro, which accounts for 11% of Minnesota Power鈥檚 energy, would presumably be subject to the Trump administration鈥檚 10% tariffs on Canadian electricity imports.
The 10% tariffs on energy imports from Canada and 25% tariffs on all other products from Canada supposedly took effect Tuesday but were partially delayed by another month on Thursday.
Companies importing goods from abroad pay tariffs to the government that enacts the tariff, and economists agree that those costs are generally passed on to consumers, causing prices to increase.
But exactly how these tariffs will affect electricity imports and prices in the region is unclear.
Grid operators and utilities remain unsure of when the tariffs will take effect, and if electricity will even be subjected to tariffs.
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Brandon Morris, a spokesperson for the Midcontinent Independent System Operator, the grid operator in the central U.S., said there was uncertainty about whether import tariffs would even apply to electricity from Canada or if the tariff threat would be resolved.
鈥淢ISO has received no confirmation from federal agencies regarding the duties鈥� applicability to electricity or who will be responsible for paying or collecting them,鈥� Morris said Wednesday.
Minnesota Power echoed the uncertainty.
鈥淲hile it is unclear at this time whether electricity will be subject to tariffs imposed by the United States or Canada, we are watching the situation closely to determine any potential impacts to our customers,鈥� Rutledge said, adding that the company has other domestic power sources it can lean on.
Ford鈥檚 threat to cut Ontario鈥檚 power to the U.S. would also have little effect on the regional grid.
MISO, which oversees the grid stretching from the Midwest down to Louisiana and parts of Texas, receives less than 1% of its electricity from Canadian imports and less than half of that came from Ontario, Morris said.
鈥淔or context, that amount is equivalent to approximately one power plant,鈥� he said. 鈥淢ISO manages the loss of power plants like this every day to ensure reliability across our footprint.鈥�
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The Winnipeg Free Press reported Thursday that Manitoba鈥檚 financial minister instructed the Manitoba Hydro board to seek Cabinet approval before extending existing or entering into new power purchasing agreements with U.S. companies.
Minnesota Power is nearly five years into a 15-year power purchase agreement with Manitoba Hydro, bringing 250 megawatts of hydropower from northern Manitoba to Minnesota Power customers.
Minnesota Power built a 224-mile, 500-kilovolt transmission line from a substation east of Grand Rapids to the international border in Roseau County to carry the hydropower. The Duluth-based utility can also send power northward when wind production is high.
Energizing the line in 2020 was key in helping the company jump from 30% renewable energy to 50% renewable energy.
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